Sales Benchmarking is the process, where companies compare their sales performance against their competitors. Habitually, Benchmarking is measurement process against those who are considered the best in the industry.
The objective of benchmarking is to ascertain intramural prospects for amelioration. By analysing and evaluating the companies with eminent performance, anatomising the reasons and factors, for attainable prominent sales. Comparing those lucrative sales performance with that of your own company and effectuate the changes that will yield substantial improvements.
Sales benchmarking illustrates the areas you are more proficient and efficient. It also affirms which areas the significant improvement is desirable. It is sagacious and advantageous practice to establish guidelines, establish dominant sales practices and create a competitive environment. Sales benchmark is done for the company as a whole or for a selected areas of operations.
Sales benchmarks, if interpreted and depicted correctly, gives insightful strategies for sales. Benchmarking enables empirical methodology and intelligent information retrieval of data for factual decision-making.
Using the right tactics and techniques is important for success of any benchmark analysis.
1. The Right Benchmarks
There are numerous types of benchmarks for sales and business, select the type which is relevant to your industry, your company and research purpose. Impeccable solutions of benchmarks that invariably provide sales leaders with actionable insights.
Following are the different types of Benchmarks followed in sales.
a) Process Benchmarking
Process benchmarking compares Sales Operational Processes of a company with the peers and industry leaders. It concentrates on the the areas that have the great improvement potential for both imminent and extended period of time. In this process the empirical data is collected through research, surveys, and website visits.
b.) Performance Metrics
Performance Metrics benchmark compares the competitors numerical metrics which were gathered as information. It determines the techniques to increase sales and revenues. It is a short term solution with quick results.
c.) Strategic Benchmarking
Strategic benchmarking is planned for long term goals, it highlights the future strategies of competing companies. It involves a legitimate competitive element in different types of business.
d) SWOT Benchmark
SWOT is opportunity combination of strength & weakness with opportunities & threat.
It is to gauge improvement in mission-critical areas identified by most of the companies.
e) Peer Benchmark
Peer benchmarking is a process designed for comparing companies against one another, either from their respective industry or their particular region. This process discloses the enigma of prosperity and success of some companies vis-a-vis others in the industry.
f) Group Benchmark
This process is used in management to evaluate various aspects of best-practices companies follow, usually within a peer group defined for the purposes of comparison.
g) Best Practice Benchmark
In this form of benchmarking the companies look forward to those companies who have already made their impression in the sales and business field. The best practices which they followed in the industry, are incorporated by others to replicate similar or loftier results.
2. Collection of Right Data
The value of benchmarking is as good as the quality and relevancy of the data. The data collected for planning and research helps the company provide the comparative aspects. The final data collected through this collection stages are considered as a fact of comparison.
3. The Outcome of Benchmark Analysis
It entirely depends on the management and the company to implement the results of Sales Benchmark Analysis. Experience and time-tested expertise in sales strategy and management is the key to unlock valuable insights from the data.
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